AG
Declines To Prosecute Bennett on Nine Years Ago Charges

Harare, April 06, 2010 - The Attorney General's office has
declined to prosecute MDC treasurer general Roy Bennett on charges of
holding to maize nine years ago in matter that has been described as
persecution rather prosecution.

Bennett was last week served with
fresh summons last week at the High Court where he is on treason trial and
he was supposed to appear before a Chipinge magistrate for breaching the
Grain Marketing Board Act.

Chief Law Officer Chris Mutangadura in the
AG's office on Tuesday said the AG's office is no longer pursuing the matter
on the grounds that there was no justifiable reason why the matter was not
heard in 2001 when the summons were issued.

"We are not going to
pursue that matter at the moment. We have told Bennett's legal practitioners
to wait to hear from us on the way forward. What we need to check now is who
was holding on to those summons because this is a straight forward case
which could have been dealt with back then," said
Mutangadura.

Bennett's lawyer Beatrice Mtetwa of Mtetwa and Nyambirai
said they approached the AG's office to intervene after realizing that the
trial was not going to go ahead.

"What we did last was to approach
the AG (Johannes Tomana) to intervene because we had not been offered the
docket and the witness statements. The AG agreed that there was no need for
Roy Bennett to travel all the way to Chipinge when we knew that the trial
will not proceed," said Mtetwa.

She said the AG said he will make a
determination after going through the docket which "he is yet to receive
from police officers from Chipinge".

The charges against Bennett arose
after he allegedly violated the Grain Marketing Board (GMB) Act for failing
to declare 92, 289 metric tones of maize to the authorities nine years
ago.

The State alleges that on October 22, 2001 and at Charleswood Estate
Chimanimani Roy Leslie Bennett wrongfully and unlawfully was found in
possession of 92, 289 metric tones of maize which he did not declare to the
authorities in terms of the GMB act.

According to the Constitution of
Zimbabwe any person charged with a criminal offence shall be accorded a fair
hearing within a reasonable time.

Therefore it is a fundamental breach of
a person's human rights if prosecutions are not brought expeditiously
against a person accused of crime. If there is a delay a person accused of a
crime may not, for example, be able to call witnesses in his
defence.

Meanwhile David Coltart, secretary for legal Affairs in the
smaller Movement for Democratic Change (MDC) faction and Education Minister
was quoted by the Prime Minister's Website condemning the move to prosecute
Bennett on charges that happened nine years ago.

"In short it is not
open to the police to bring charges now when they should have been brought
years ago when the crime was allegedly discovered. The police cannot keep
charges locked away in a drawer to be brought out at an "appropriate"
moment. If a crime has been committed by a person known to the police then
charges should be brought immediately against that person. Accordingly the
prosecution of Senator Bennett at this late stage appears to be a clear
breach of section 18 of the Constitution. The Attorney General has a duty to
explain to the public why it is that this prosecution was not brought
earlier. If he cannot do so then the public will assume that there has in
fact been a breach of section 18 and a denial of a fundamental right to
Senator Bennett."

His comments
appear to have created tension with the architect of the regulations,
Indigenisation minister Saviour Kasukuwere.

Gono, who was speaking during
a tour of his Donnington Farm by visiting ANC Youth League president Julius
Malema, railed against the empowerment regulations.

He and Kasukuwere
have openly clashed over the controversial empowerment law.

After a
tour of Gono's massive farm supposedly to trumpet the land grab as a success
story to the visiting ANC delegation, Gono delivered another unrestrained
attack on the empowerment regulations.

The regulations seek to give
foreign owned companies, including banks and mines, 45 days to submit
proposals on how they plan to sell 51 percent of their shares to black
Zimbabweans within the next five years.

"Honourable people," said Gono;
"be on the look out for those who would want to be greedy; those who would
use connections to get into factories. Let's guard against vices that might
draw us back. The process cannot benefit the same people who have benefited
over the years."

Kasukuwere fidgeted uncomfortably in his seat as Gono
said this.

Gono first attacked the empowerment regulations in an
interview with a local financial weekly, where he said he was against the
"content, style and approach" of the policy.

Gono warned against
farm-type "jambanja" (gang violence) this time around.

He was referring
to President Mugabe's land grab programme that saw prime farmland seized
from white commercial farmers and redistributed to landless blacks, but with
serious consequences on agricultural production and exports in the
agro-based economy.

"We are all witnesses to what can inadvertently
happen when that is allowed to take place and we cannot be a people who do
not learn from yesterday's implementation shortcomings," Gono said in the
interview.

Kasukuwere also accused Gono of
shutting down indigenous-owned banks, saying the governor had no moral
ground to lambast the empowerment regulations.

At Donnington Farm,
Kasukuwere, who was chaperoning the visiting ANC delegation, cut a lonely
figure. In his speech, the minister steered clear of commenting on the
regulations.

Informed government officials say Kasukuwere enacted the
regulations with the full support, if not encouragement of President
Mugabe.

Prime Minister Tsvangirai has declared the regulations "null and
void" because they were enacted without consultation with him as the global
political agreement and Constitution Amendment No 19 prescribes.

The
regulations also bypassed a Cabinet committee that looks at the legality of
regulations before they are gazette.

But Kasukuwere said last week: "I am
empowered to publish. When I became Minister of Indigenisation the Act was
already there. What was I supposed to do, sit around and not gazette the
regulations? I only consult when there is need."

Mugabe himself has
wondered why Zimbabweans would be opposed to a scheme that seeks to empower
them.

But critics say the timing of the enactment of the regulations was
out as they came as the country was desperately trying to attract foreign
investors.

Observers say the regulations have dissuaded many
investors, who have put plans to invest in Zimbabwe on ice.

Just last
week, the German African Business Association in Hamburg and the German
Southern African Chamber of Industry and Commerce in Johannesburg put on
hold plans to bring German investors into Zimbabwe, describing the country
as a "no go area'' for foreign investors.

Gono and Kasukuwere have
clashed seriously over the law with the former saying it was going to
destroy the economy while the later insists that it was meant to empower the
black majority.

Speaking at a ZANU-PF meeting held at Dr Gono's Norton
farm Sunday night, ANC youth leader Julius Malema said Gono was better
qualified to oppose the Indigenization Act because he knew the economy
better than Kasukuwere.

"You must understand the role of a Governor; he
at all times has a responsibility of balancing his Act. It is him who
must balance both the confidence of the people and the investor and in
most cases you are going to fight with him more than five times,
because he seeks to balance his actions.

"He at times must not sing
slogans because he is neutral and during the execution of his duties he must
be patient and ready to take that heat because he has entered the kitchen.
If he cannot take the heat he is sometimes told to get out and we do not
need that to happen.

"If you have areas of disagreements, do not fight
through the media", he said.

Gono said he was not opposed to the Act
but was worried by the way it was going to be implemented.

"We have
done a number of empowerment programs over the years which have not bore the
required resources. We have witnesses of good polices that have failed our
people on the altar of implementation. We have people who have had access to
land and they have not had an excellent result and we are saying that action
should not be repeated. We are also sounding a warning bell to the
government that please be on the lookout of those who want to be greedy
,those who want to use connections to get into these factories and others
to just be smart about it. We are saying let's guard against those vices
that want to draw us back to where were where, "said Gono.

Kasukuwere
maintained that there was no going back in implementing the law.

"Those
who are opposed to the Act must go and die. We have no reverse gear in our
gear box. Journalists please emphasize that Kasukuwere has said 50% in the
country's minerals are for us. If there is an insane Zimbabwean who is
opposed to that he must go and die", he responded at the same meeting.

Kunonga
snubs Vice President Nkomo

Anglican
parishioners from Harare were barred from going to church this Easter by the
notorious Nolbert Kunonga, the former Anglican Bishop of Harare. This
resulted in at least a thousand Anglicans having to celebrate Good Friday in
the Unity Square Gardens, after being shut out of their parishes and the
Cathedral over Easter, in spite of a court order instructing the warring
factions in the Church to share access to the property, pending the outcome
of the dispute in the courts.

"It was a very moving service, especially
when you consider that Jesus Christ was crucified out of the city, and there
we were meeting for Good Friday outside of our churches and in this case
outside of the Cathedral. For us it was very symbolic," Bishop of Harare
Chad Gandiya told SW Radio Africa on Tuesday.

He said even one of the
Vice Presidents tried to appeal to Kunonga but it just didn't work. "Vice
President John Nkomo tried to talk to both of us together and asked us if we
could just work in peace, obviously observing Justice Makarau's judgement -
that we share until such a time the courts determine the matter that is
before them. And I understand that this is the thinking of most people in
government that the law should be upheld, but to our surprise it wasn't and
again as is always the case, the police were prohibiting us."

The
Bishop would not divulge what exactly went on in the meeting with the Vice
President, except to say that the request to share the building was not
accepted by Kunonga. As Vice President Nkomo is dealing with issues of
National Healing and Reconciliation.

Bishop Kunonga was
excommunicated by the Church in May 2008 after he tried to unilaterally
withdraw the Diocese of Harare from the regional Anglican Province of
Central Africa. To this day the Bishop refuses to accept this decision by
the Church and also refuses to give up possession of St. Mary's Cathedral in
Harare. His successor is Bishop Gandiya, who has not been allowed to conduct
church services in the diocese.

The disputes have reached the courts,
with the High Court ordering both factions to share church property while
the matter is still being dealt with, but Gandiya's faction is still forced
to conduct church services in the open and Kunonga and the police are in
clear violation of the High Court order.

Anglican parishioners who
attended the open mass over Easter said popular support is with Gandiya,
because he still commands huge numbers of parishioners to his service,
including support from respected and retired Bishops like Peter Hatendi and
Sebastian Bakare.

Our correspondent Simon Muchemwa said there were only
about 100 church members loyal to Kunonga in the Cathedral, which was
heavily guarded by the police. He said: "The service was held upstairs and
not in the main arena of the Cathedral because the congregation was small,
and this service was held while hundreds of other Anglican worshipers were
forced to worship in the Unity Square Gardens on Good Friday."

Some
observers say Kunonga must have the backing of Mugabe - because without this
he wouldn't have the constant police support that he has access
to.

Bishop Gandiya said the tragedy of the whole situation is that people
know there is a law to be obeyed and yet continue to flout it, with the help
of the police.

A frustrated parishioner sent an email to SW Radio
Africa saying: "I'm Anglican and the issue of the persecution of our church
here in Harare Diocese has escalated to ridiculous levels. We are
worshipping outside locked, empty churches and we are having priests
arrested for giving mass, etc."

Harare
considers auctioning diamond fields

HARARE - Zimbabwe's government is now considering auctioning
parts of the Chiadzwa diamond field to firms that have applied to mine in
the area, senior government sources told ZimOnline last week.

However
the sources said the government was caught up in quandary because not all of
Chiadzwa (also known as Marange) has been surveyed to establish the value or
size of deposits that the state would need to know to be able to set prices
for the various portions of the field to be auctioned.

"We are thinking
of auctioning the Chiadzwa diamond fields," a senior government official
said, speaking on condition that his name was not published.

"The
problem is that we do not know the value of the diamonds there. The major
problem with Chiadzwa is that other parts of the area have diamonds and one
area has nothing, so how do you put a proper valuation of the gems
there?"

Currently two firms Canadile Miners and Mbada Investments are
operating in the diamond fields in joint ventures with the government's
Zimbabwe Mining Development Corporation (ZMDC) in line with Kimberley
Process (KP) standards.

Both Canadile and Mbada are said to be just
each using 1 000 hectares of the 69 000 hectares the ZMDC has in
Chiadzwa.

The source said the firms which will most likely be considered
are part of the 20 from which the government has received
applications.

"There is a feeling that although we have shortlisted four
firms out of 20 that have applied, if we auction off the area there could be
more revenue for the state," the official said.

"However our biggest
worry is that we do not know the value of the diamonds that in
Chiadzwa."

Most of the diamonds in Chiadzwa are classified as alluvial
diamonds.

Mines Minister Obert Mpofu was not immediately available for
comment.

Chiadzwa is one of the world's most controversial diamond fields
with reports that soldiers sent to guard the claims after the government
took over the fields in October 2006 from British-based Africa Consolidated
Resources that owned the deposits committed gross human rights abuses
against illegal miners who had descended on the field.

Human rights
groups have been pushing for a ban on Zimbabwean diamonds but last November,
the country escaped a KP ban with the global body giving Harare a June 2010
deadline to make reforms to comply with its regulations. - ZimOnline

Zim
talks are on again

President Jacob Zuma is to send his team of
negotiators back to Zimbabwe after power-sharing talks between Zanu-PF and
the Movement for Democratic Change stalled again.

Zuma, who last
month visited Zimbabwe as the African Development Community's chief
mediator, set a deadline of March 31 for the political parties to resolve
their differences.

But President Robert Mugabe, MDC leader Morgan
Tsvangirai and Arthur Mutambara, of the breakaway MDC, failed to meet the
deadline and gave Zuma's facilitation team only a verbal
update.

Zuma's spokesman, Vincent Magwenya, yesterday said the team was
heading back to Zimbabwe. It hoped to secure a written agreement between all
parties.

"The deadline was missed and the negotiators representing the
political parties asked for more time. The president is hopeful that all
outstanding issues will be concluded this week and that a full report will
be presented to him," Magwenya said.

Since the signing of the Global
Political Agreement in 2008, Mugabe and Tsvangirai have blamed each other
for the lack of progress in their unity government. Tsvangirai has blamed
Mugabe for reneging on key provisions of the deal and continuing to
undermine MDC ministers.

Mugabe accused Tsvangirai's party of working
with the West to impose sanctions on Zanu-PF ministers and others loyal to
him.

The dispute is also about Mugabe's continued refusal to remove
central bank governor Gideon Gono, and attorney-general Johannes Tomana,
from their posts. Mugabe has also refused to appoint the MDC's Roy Bennett
as deputy minister of agriculture.

Magwenya said that though the
negotiations were moving at a snail's pace, Zuma was confident that an
agreement on all outstanding issues would be reached.

Zimbabwe
Dairy Industry Seen on Verge of Collapse Following Decade of Land
Reform

Zimbabwe's national dairy herd is down to just 22,000 cows
from 192,000 in 2000 when supporters of President Robert Mugabe started
seizing white-owned farms

Gibbs Dube & Loirdham Moyo | Washington
05 April 2010

Zimbabwe's dairy industry has declined to the verge of
collapse following a decade of land reform, experts say, with the national
dairy herd down to just 22,000 cows from 192,000 in 2000 when supporters of
President Robert Mugabe started seizing white-owned farms.

Chairman
Wesley Tose Sansole of Parliament's Committee on Industry and Commerce said
his panel heard from managers of the state-controlled enterprise Dairibord
Zimbabwe that it is being supplied by just 60 dairy farmers compared with
215 providers in 2000.

Deliveries have plunged to 38 million liters a
year from 138 million liters of milk 10 years ago.

He also said chronic electric power
outages are also hurting the dairy industry.

Meanwhile, some newly
resettled commercial tobacco farmers are complaining that they don't have
enough laborers to harvest the current crop.

As correspondent Loirdham
Moyo reported, farmers in Nyazura and Rusape, Manicaland province, among
other areas, have warned that if tobacco leaves are not picked in time, the
quality of the crop could suffer.

Sibanda
says war veterans got ‘peanuts’

HARARE – War veterans’ leader Jabulani Sibanda has
described as peanuts payments given to the former freedom fighters by
government thirteen years ago.He says the payments did not take into
consideration the number of years spent in the
struggle.

Sibanda, wrestling for control of Zimbabwe National
Liberation War Veterans Association (ZINLWVA) with Joseph Chinotimba said
former liberation war fighters deserved better than the gratuities they
received from government.

“You say war veterans were paid for
participating in the struggle,” said Sibanda. “How much were they paid? How
long were they in the struggle? Were the gratuities consistent with the
number of years spent in the struggle? ”

“The answer is no, because war
veterans were given peanuts to get them off the streets where they were
demonstrating after 17 years of independence.

In 1997, the government
acceded to demands by the ex-combatants and paid them Z$50 000
each.

“Former Rhodesians are receiving pensions and war veterans receive
nothing,” said Sibanda. “That was gross injustice on the side of the freedom
fighters by a free government that had come into power by the sacrifice of
the same.”

Meanwhile, cracks continue to widen within ZINLWVA. Sibanda
was re-elected chairman of the organisation at a congress last
month.

But Chinotimba has refused to recognise Sibanda’s
leadership.

“We do not even recognise the congress and we do not even
believe that it took place,” said Chinotimba. “If it did then who was the
presiding officer? He (Sibanda) cannot be a presiding officer and the
winner.

“It was not the war veterans because the real war veterans’
congress is going to be held soon.

However, Sibanda, who has been at
the helm of the association since 2000, said the congress was conducted
above board. He was retained unopposed.

The elections took place at
Chaminuka Training Centre in Bindura.

War veterans have over the years
been loyal supporters of President Robert Mugabe, patron of the
association.

The ZNLWA fired one of its top members after he denounced
Mugabe for holding on to power.

Maxwell Marange, who was the
association’s chairman in Manicaland Province, chanted slogans denouncing
Mugabe at the Meikles Park in Mutare during a march organized to support the
aging leader’s presidential candidacy in the 2008 elections.

But
Marange took everybody by surprise when he took to the podium and chanted:
“Pasi naMugabe! (Down with Mugabe).”

Marange was among Zanu-PF supporters
who felt Mugabe was not the appropriate candidate to stand on behalf of
Zanu-PF in the 2008 harmonized poll.

Mugabe went on to lose to Morgan
Tsvangirai, the MDC leader. However, official results suggested Tsvangirai
had failed to secure 51 percent of votes to take over presidency,
necessitating a runoff.

Zanu PF
Launches Propaganda Newsletters In Rural Areas

Gutu , April 06, 2010 - Despite enjoying a propaganda
monopoly on the public media, beleaguered Zanu PF party, in its quest to
discredit the Movement for Democratic Change (MDC) party, has launched two
newsletters, The Insider, and The Zimbabwe Today, which are circulated free
of charge in rural areas, and ae being seen as a counter to the MDC
publications.

The MDC, under Prime Minister Morgan Tsvangirai, publishes
two newsletters, The Changing Times, for the party, as well as The Prime
Minister's Newsletter, which highlights the party's position and
developments in the inclusive government. The two publications have proved
to be a people's favorite.

Not to be outdone, president Robert Mugabe
has so far published two issues of the two new publications following the
closure of the party newspaper, The Voice, which also churned party
propaganda.

Radio VOP recently witnessed the two tabloids - which have
the same colours and masthead as those of the MDC-T - being distributed by
Zanu PF youth, free of charge, to information starved villagers in
Domborembavha and Munyaradzi communal areas in Gutu.

The Insider had
a lead story titled, 'MDC paying lip service to corruption'. The story
alleges that the anti corruption drive in the party is targeting 'small
fish', amid allegations that Tendai Biti, who is the party secretary general
and Finance Minister in the inclusive government, is involved in a $13 000
000 scam. Quoting un-named sources, the paper alleges Biti bought Tsoko
lodge in Nyanga from the misappropriated funds from donors which he held in
the absence of MDC-T treasurer general, Roy Bennet, who was in exile in
South Africa and now facing treason charges.

The Zimbabwe Today carried
long columns from well known Zanu PF sympathisers, Reason Wafawarova and
Tafataona Mahoso,denouncing the West over sanctions.

Zimbabwe Today's
motto, 'What the man on the streets needs to know about Zimbabwe', does not
live true as some its articles carry difficult words that would need the
reader, the ordinary man in the street, to constantly consult the
dictionary.

Political analyst Takavafira Zhou said he got wind of the two
newsletters being circulated in Masvingo, but rubbished them as
a'desperate attempt by a desperate party'.

"They are trying in vain
to discredit the MDC-T, despite having control of Zimpapers and The Zimbabwe
Broadcasting Holdings (ZBH). But I know the people will no longer buy their
propaganda," Zhou said.

South Africa’s hate speech echoed in Zim, by Malema

Concern is high after this weekend’s controversial visit by ANC
Youth League (ANC-YL) leader Julius Malema, who used a ZANU PF rally to sing
a song already deemed as ‘hate speech’ by his country’s
courts.

Malema visited Zimbabwe as a guest of ZANU PF’s Youth League, to
learn ‘lessons’ on nationalisation. The firebrand ANC-YL leader, who rose to
notoriety by stating that he would ‘kill’ for South African President Jacob
Zuma, addressed a number of ZANU PF rallies over the weekend. It was on this
platform that Malema once again sang the apartheid era protest song ‘Shoot
the Boer’ (Dubula’ibhunu), which a court barred him from singing after
declaring it a form of hate speech.

But this didn’t stop him from
singing it in Zimbabwe, where a senior ZANU PF youth official substituted
the word ‘ibhunu’, with ‘Roy Bennett’ - in reference to the MDC Treasurer
General.

“We are not against whites at all, we are only against those
whites who donot see blacks as human beings,” said ZANU PF youth secretary,
AbsalomSikhosana.

There is grave concern over this echo of Malema’s
chosen song, which he has used to incite and stir up racial tensions in
South Africa. The ANC led government has also declared it would appeal the
court decision ruling the song as hate speech, saying it is a part of the
country’s heritage. But rights groups, such as civil rights initiative
AfriForum, have warned that the singing of the song in recent weeks is
increasing racial tensions and violence.

AfriForum’s Ernst Roets, who
has led the legal challenge to force Malema to stop singing the song, told
SW Radio Africa on Tuesday that the song is encouraging ‘racial
polarisation’ and violence. He explained how many of their members have
spoken of increased threats against them, threats that have only increased
since Malema started using the song as his personal anthem. Roets also
expressed concern that at least seven South African farmers have been killed
since Malema first sang the song last month, echoing statistics that one
farmer is killed every two days in South Africa. Roets however hesitated in
linking the murders with the singing of the song.

ZANU PF’s worrying
twist on the song came at the same time that racial tensions almost boiled
over in South Africa, after a controversial white supremacist was murdered
over the weekend on his farm. Eugene Terreblance was killed by two of his
farm workers, allegedly in a dispute over pay, but his far right wing AWB
group has accused Malema and the singing of the ‘Shoot the Boer’ song as the
real reason behind the murder.

The ANC led government, under the helm of
Jacob Zuma, has called for calm and police have stated that the murder is in
no way political. But as Roets pointed out on Tuesday there has been no
condemnation of the song or Malema’s contempt of court by singing it. Roets
said it is gravely concerning that the country’s leadership refuses to
denounce hate speech in this way, despite what many say are the obvious
consequences.

44 perish on roads

SIX
people died yesterday when a Peugeot 504 sedan they were travelling in burst
a tyre and collided with a Masvingo-bound Mhunga bus along the
Harare-Masvingo Road near Lanark Store, about 30km outside Harare bringing
to 44, the road fatalities in one of the bloodiest Easter holidays in
years.

Last year 19 people died over the four-day holiday
period.

All the passengers on the Harare-bound Peugeot died on the spot
while the injured, who were on the bus, were ferried to Chivhu District and
Harare General hospitals.

The Peugeot was coming from Zinatsa area in
Chivhu but it could not be ascertained if the passengers were related by the
time of going to print.

The number of injured people was not immediately
confirmed. Ambulances sounding sirens were seen heading for Harare by late
yesterday evening.

Beatrice police spokesman Simon Dube, who was at the
scene of the accident, said the injured were ferried to Chivhu and Harare
but did not give further information, referring The Herald to
Harare.

However, eye witnesses said when the Peugeot burst a tyre,
another vehicle - a Mazda 323 - that was travelling behind it tried to avoid
a collision and encroached onto the other lane.

On seeing the Madza
in his lane the Mhunga bus driver swerved onto the opposite lane and
ploughed into the Peugeot killing all six on impact.

The bodies were
ferried to Chitungwiza General Hospital mortuary where families who suspect
their relatives could have been travelling in the Peugeot should go and
identify the bodies.

The Peugeot was reduced to a mangled wreck, with the
engine and gearbox being detached from the chassis.

Police spokesman
Superintendent Andrew Phiri on Sunday said 10 749 tickets were issued to
various traffic offenders while 433 unroadworthy vehicles were
impounded.

Police have attributed most of the accidents to human error
with the remainder blamed on driving without due care and inattention,
overloading and defective vehicles.

South African facilitator Lindiwe Zulu said her team will
have a copy of the report by Wednesday and review it with President Zuma
before returning to Harare to press the power-sharing parties for broader
agreements

Ntungamili Nkomo | Washington 05 April 2010

The
three principals in Zimbabwe's troubled power-sharing government have
received a report summarizing the state of talks by their negotiators, who
have again deadlocked on key issues and are expected to meet soon to try to
resolve those so-called outstanding issues with the help of South African
mediators.

Negotiator Elton Mangoma of the Movement for Democratic
Change formation led by Prime Minister Morgan Tsvangirai told VOA on Monday
that Mr. Tsvangirai, President Robert Mugabe and Deputy Prime Minister
Arthur Mutambara were reviewing the report from negotiators for their
parties. Mutambara is the president of a rival MDC formation.

Sources
said the report states that negotiators could not agree on the fates of
Reserve Bank Governor Gideon Gono and Attorney General Johannes Tomana,
whose appointments in late 2008 by President Mugabe in the interim between
the September signature of a power-sharing agreement and the formation of a
national unity government has been a bone of contention.

Following
mediation by South African President Jacob Zuma in March, political sources
said one of the two men was supposed to step down as part of the "package of
measures" assembled by Zuma, mediator on behalf of the Southern African
Development Community.

President Robert Mugabe and other ZANU-PF
officials since then have denied there was such a deal.

South African
facilitator Lindiwe Zulu said her team will have a copy of the report by
Wednesday and review it with President Zuma before returning to Harare later
in the week to push for broader agreements.

Bulawayo-based political
commentator Qhubani Moyo told VOA Studio 7 reporter Ntungamili Nkomo that
the only solution may be new national elections - but this is possible only
if a new constitution is put in place.

MDC
youths say Malema provocative

BULAWAYO - The mainstream MDC youth assembly has described
Africa National Congress (ANC) youth president Julius Malema's remarks
during his just-ended visit to Zimbabwe as provocative.

ANC Youth
League leader Julius Malema, left, from South Africa meets with President
Robert Mugabe during his visit to Zimbabwe Monday, April 5, 2010. Malema,
the militant leader of South Africa's ANC youth league, arrived in Zimbabwe
on Friday and addressed several Zanu-PF meetings and a rally before meeting
President Robert Mugabe.

He described MDC as imperialist an organization
which the ANC youths would not befriend.

However speaking to The
Daily News on Tuesday, mainstream MDC deputy national youth chairman, Amos
Chibaya, who is also legislator for Mkoba, dismissed Malema's remarks as
unnecessary provocation.

"He just came here to provoke the situation,"
said Chibaya. "As MDC youths we respect ANC leaders so much. They are
mediators between parties in the inclusive government here. And for Malema
to just come and insult us; it's just unacceptable.

"Malema should
not act as if he is the youth leader to all African political parties by
going around labelling others puppets of the West".

He said they were
going to file a complaint with ANC leaders over Malema's
sentiments.

"As the MDC youth assembly, we are going to formally
engage leaders of his party on this issue," he said.

During his
four-day visit, Malema toured platinum giant Zimplats in Ngezi where he was
told of proposed black empowerment plans at the mine.

Zimplats and
beverages conglomerate Delta are some of the big foreign-controlled firms
that have submitted empowerment proposals in compliance with government's
indigenization regulations.

Indigenisation minister Saviour Kasukuwere
described proposals presented to him by Zimplants as "crazy".

The
Indigenisation and Economic Empowerment Act, gazetted in February and
effective from March 1, states that foreign firms valued at a half a billion
dollars or more should cede 51 percent of their shareholding to
locals.

Zanu-PF invited Malema to buttress its indigenisation agenda and
the much-criticised regulations.

In South Africa opposition parties
have sought to draw a link between the weekend murder of white supremacist
Eugene Terreblanche with Malema's insistence on singing a liberation song
"Dubul' ibhunu", which means "shoot the Boer."

The song has been
banned by the courts but the ANC says it will appeal against the decision.

FULL
TEXT: KP monitor's Marange report

The author prepared this report to confirm the
understanding of the mandate of the KP Monitor for Zimbabwe. The report is
written with a view to ensuring that the KP Monitor's approach to the
implementation of the Joint work plan is consistent with Kimberley Process,
Working Group on Monitoring expectations. The terms of reference and joint
work plan incorporate in this report provide further details of the KP
Monitor's respective responsibilities and; the fact-finding visit to
Zimbabwe facilitated an on-the-spot assessment of the situation. Further,
the fact-finding-visit has enabled him to determine his approach to the
assignment and confirmed his operational requirements.

The
fact-finding-mission occurred from 1-3 March,
2010.

Background

Appointment of the KP Monitor

Abbey
Chikane, founder chairman of the Kimberley Process was nominated KP Monitor
for Marange, Zimbabwe by the Kimberley Process Working Group on Monitoring,
in consultation with the current chairman of the Kimberley Process.
Following communication between Mr. Chardon, chairman of the Working Group
on Monitoring, and the Honourable Obert Mpofu, Minister of Mines and Mining
Development, Chikane was accepted by the government of
Zimbabwe.

Understanding the Mandate

The Seventh Annual Plenary
of the Kimberley Process Certification Scheme met from 2 - 5 November, 2009
in Swakopmund, Namibia. At this meeting, the Plenary adopted an
Administrative Decision on a joint work plan aimed at bringing Zimbabwe's
diamond trade into full compliance with the minimum requirements of the
Kimberley Process. This follows acknowledgement by Zimbabwean government
representatives that there have been certain challenges in complying with
the minimum standards of the Kimberley Process Certification Scheme. The
government noted its commitment to urgently addressing issues identified in
the reports of the Working Group on Monitoring (WGM), Working Group on
Statistics and the report of the Kimberley Process Review Mission to
Zimbabwe that took place from 30 June to 4 July 2009.

The joint work
plan was developed by Zimbabwe and the Kimberley Process Certification
Scheme to implement recommendations of the Review Mission (2009). The joint
work plan is expected to be supported by technical assistance from
Participants and Observers in the Kimberley Process. Plenary also urged
Kimberley Process Participants and Observers to promote regional cooperation
and outreach in support of this plan. The implementation and progress of the
plan will be reviewed by the Intersessional and Plenary of the Kimberley
Process in 2010.

To oversee and support the implementation of the joint
work plan, Plenary resolved that a Kimberley Process Monitor for Zimbabwe
(KP Monitor) be appointed. As stated in the Joint work plan, the role of a
KP Monitor is to examine and supervise shipments of rough diamonds from the
Marange area. The Joint work plan provides for a supervision of export
mechanism under which exports of Marange diamonds are subject to Kimberley
Process verification and confirmation that those rough diamonds were handled
in full compliance with the minimum standards of the Kimberley Process. The
Administrative Decision also provides for a review mission to assess
progress in the implementation the joint work plan.

Although the
terms of reference and joint work plan eloquently explained the task, the KP
Monitor would like to restate his understanding of the assignment. The main
objective of the KP Monitor is to support the implementation of the
Swakopmund Plenary Administrative Decision and Joint work plan and work with
the Zimbabwean authorities towards full compliance with the minimum
requirements of the Kimberley Process Certification Scheme.

The main
activities of the KP Monitor involve monitoring the implementation of the
Joint work plan and reporting on a regular basis, with the frequency of such
reporting still to be mutually agreed, to the chairman of the Working Group
on Monitoring with copies to the Kimberley Process chair and
the

Minister of Mines and Mining Development of Zimbabwe. The
Kimberley Process and the government of Zimbabwe have agreed that the KP
Monitor will have full and unhindered access to all relevant diamond
production and processing sites as well as to all stakeholders from the
point of mining to the point of export, including representatives of
government, industry and civil society.

On request, the KP Monitor
will prepare an Interim Progress report for the Kimberley Process
Intersessional meeting, to be held in June 2010 and/or for the preparation
of the Kimberley Process Review Mission which will be conducted in terms of
the Joint work plan, as well as a Final report for the Plenary which is
scheduled to convene in November 2010. The calendar for submitting regular
progress reports will be provided to the KP Monitor for consideration by the
Chair of the working group on monitoring.

In addition, prior to each
export, the KP Monitor will examine, at the request of the Zimbabwean
Ministry of Mines and Mining Development, diamonds shipment from any
producing areas in the Marange diamond fields to confirm whether diamonds
selected for shipment meet Kimberley Process minimum requirements and
confirm their certification for export.

The KP Monitor will conduct a
thorough examination of individual shipments and their chain of custody to
confirm their compliance with Kimberley Process requirements, according to
the following procedure:

- When the KP Monitor assesses that an export
shipment has been produced and prepared in accordance with Kimberley Process
Certification Scheme minimum requirements, the KP Monitor is required to
confirm this on the relevant Kimberley Process Certificate with his
signature and stamp, and will digitally photograph the certificate and
shipment. A specimen of the KP Monitor signature and stamp will be provided
to the Kimberley Process Chair for prior distribution to Kimberley Process
Participants.

- When the KP Monitor assesses that an export shipment has
not been produced and prepared in accordance with Kimberley Process
Certification Scheme minimum requirements, the KP Monitor will provide to
the Ministry of Mines and Mining Development specific written indications as
to the reason(s), including any possible means of remediation. Any such
proposed export will be held until the necessary remedial action is
completed, after which the KP Monitor will reexamine the export and, if
fully Kimberley Process Certification Scheme compliant, certify the shipment
and sign the Kimberley Process Certificate.

After each examination,
the KP Monitor is required to prepare a specific KP 'export examination
report', providing summary conclusions on exports that have been reviewed
against specific Kimberley Process Certification Scheme requirements. Such
KP 'export examination reports' are to be submitted within one week of the
certification examination to the chair of the Working Group on Monitoring,
with a copy to the Ministry of Mines and Mining Development of Zimbabwe.
Pictures of certificates and shipments must be attached to the 'KP export
examination reports'. Finally, the KP Monitor will perform his tasks under
the aegis and supervision of the Kimberley Process Working Group on
Monitoring, and will refer any related issues to this working group. The KP
Monitor may be invited to take part in the meetings or teleconferences of
the working group, at the discretion of the chair of the working
group.

KP Monitor Meetings in Zimbabwe

Courtesy visit to the
Ministry of Mines and Mining Development

On 1 March 2010, the KP Monitor
arrived in Harare on a three-day visit to begin the fact-finding mission. He
met Mr. Thankful Musukutwa, Permanent Secretary, Ministry of Mines and
Mining Development. At this meeting the Permanent Secretary proposed a three
day programme, including logistics and resources allocated for the success
of the visit. The meeting was followed by a courtesy visit to the office of
the Honourable Obert Mpofu, Minister of Mines and Mining Development. The
Minister assured the KP Monitor that he would have full access to all
relevant government representatives, relevant diamond production and
processing sites as well as to all relevant stakeholders from mine to the
point of export. He reiterated his government's desire and commitment to
comply fully with the minimum requirements of the Kimberley Process
Certification Scheme.

Meeting with KP Joint work plan
stakeholders

The KP Monitor then met with officials of numerous
state-owned entities and departments. These included representatives of the
Ministry of Mines and Mining Development (MMMD), Minerals Marketing
Corporation of Zimbabwe (MMCZ), Zimbabwe Mining Development Corporation
(ZMDC), the Ministry of Finance represented by the Zimbabwe Revenue
Authority (ZIMRA), Minerals Unit, and Zimbabwe Republic Police. In addition,
industry representatives of several private companies were present,
including Marange Resources, Mbada Diamonds, Canadile Miners and Global
Diamond Valuators, Namibia.

At this meeting, the Permanent Secretary of
Mines and Mining Development introduced the KP Monitor and requested all
present to introduce themselves. He then requested the KP Monitor to present
himself to elaborate on the purpose of his visit. The KP Monitor explained
that this was a fact-finding-mission to Zimbabwe to make preliminary
assessments on operations at the Marange diamond field and to determine his
requirements for technical support in fulfilling his mandate.

Visit
to Mbada Diamonds sorting facility

The KP Monitor visited the Mbada
Diamonds sorting and valuation facility housed in a hangar at Harare Airport
(referred to as the hangar). The KP Monitor was received by Dr. Mhlanga,
chairman of Mbada Diamonds, chief executive officer, Mr. Rhuhwaya, and Mr.
Dave Kassel, chairman of Reclam, a company associated with Mbada Diamonds.
The Monitor was also received by a contingent of government department
representatives most of whom are responsible for the monitoring and
implementation of the Kimberley Process Joint work plan.

At Mbada
Diamonds, the line management team demonstrated the process of the movement
of diamonds from Marange diamond fields to the Harare sorting and valuation
facility. The team also explained security and control systems at the
facility, chain of custody, as well as policies and procedures for handling
diamonds in and around the 'hangar'. Mbada Diamonds operational policies and
procedures were designed and implemented by Global Diamond Valuators of
Namibia, a consulting firm retained by Mbada Diamonds and Canadile Miners.
Most importantly, management explained and demonstrated company production
pipeline procedures, audit processes, administrative and document handling
procedures.

Findings:

(i) Policies, processes and procedures
applied at Mbada Diamonds are world class on paper and the company needs to
build the necessary capacity to implement them. The company also needs to
inculcate a culture of full compliance with Kimberley Process minimum
requirements.

(ii) At the 'hangar' there is an area of the sorting and
valuation facility without cameras. This creates 'blind-spots' and risks
breaking the chain of warrantees. It also creates an opportunity for rough
diamonds to be removed from the security and monitoring control system. The
KP Monitor believes this situation compromises the audit
process;

(iii) There is inadequate security around the helicopter landing
pad. While the heli pad is in a secured area, it is also close to a standard
fence that could be ripped apart;

(iv) Representatives of state
security agencies present at the 'hangar' do not seem to be adequately
trained or experienced enough to ensure that the manner in which rough
diamonds are handled is fully compliant with Kimberley Process Certification
Scheme minimum

requirements;

(v) There is no visible paper trail
to track the movement of rough diamonds from the safe to cubicles.
Management of Mbada Diamonds would like to believe that the current paper
trail is adequate; however the KP Monitor believes the system can and should
be improved.

(vi) The sorting and valuation site requires a senior
well-trained and experienced Diamond Auditor. At present the company has
entrusted this responsibility to a person who does not qualify for the job.
However, management promised they will employ a qualified person to take
full responsibility for implementation of audit policies, processes and
procedures.

Meeting with Global Diamond Valuators

At the end
of the Mbada Diamonds visit the KP Monitor requested a presentation by
Global Diamond Valuators Namibia to explain its role and the nature of
contractual relationships between the firm and its clients. Representatives
explained they are retained by Mbada Diamonds and Canadile Miners as
technical advisors to establish policies, processes and procedure to meet
Kimberley Process minimum requirements, particularly the industry chain of
warrantees. In addition, the KP Monitor requested soft and hard copies of
manuals, policies and procedures recommended to Mbada Diamonds and Canadile
Miners. These were provided and are in the custody of the KP
Monitor.

Findings;

(i) Methodologies and tools used by Global
Diamond Valuators are consistent with international best practice, however,
there is a possibility that Mbada Diamonds and Canadile Miners management
may receive all the required knowledge and information but fail to implement
systems due to lack of capacity.

(ii) The duration of the contractual
involvement of Global Diamond Valuator is not certain. This poses a concern
on the implementation and sustainability of the systems.

Meeting with
the diplomatic community

The KP Monitor was invited by the Head of
Delegation of the European Union to Zimbabwe, His Excellency, Ambassador
Xavier Marchal who hosted a dinner at his residence for the Heads of the
Missions accredited to Zimbabwe from countries or entities that are
Participants in the Kimberley Process Certification Scheme. Ambassador
Marchal advised the Ministry of Foreign Affairs of the Republic of Zimbabwe
through a note verbale that he had invited Heads of the Missions accredited
to Zimbabwe to the dinner. About 20 representatives of participating states
and regional economic integration organisations attended.

In his
speech, the KP Monitor explained that he was on a fact-finding-mission to
assess operations at Marange diamond fields and to determine his staff
requirements. In response, members of the diplomatic community raised a
number of issues, including press statements by both Honourable President
Robert Mugabe and Minister Mpofu that the government of Zimbabwe still had
an option to trade diamonds outside the Kimberley Process Certification
Scheme. However, members emphatically shared their commitment and support
for the implementation of the Joint work plan and that revenue generated
from the sale of rough diamonds should be used to rebuild the Zimbabwean
economy and improve the livelihood of its people, particularly
children.

Findings;

Most member countries represented at the
dinner fully supported the implementation of the Joint work plan with some
expressing concerns on the political uncertainty in Zimbabwe.

Visit
to Chiadzwa, Marange

On 2 March 2010, the KP Monitor visited the
Chiadzwa, Marange diamond fields for first hand information on mining
operations in that area before touring Forbes, a border post between
Zimbabwe and Mozambique. The visit to Forbes followed claims that diamonds
from Chiadzwa were being smuggled through the borders between the two
countries. Chiadzwa, Marange is a group of diamondiferous, largely alluvial
gravel properties in the province of Manicaland, Zimbabwe. Mining takes
place on surfacial alluvial and alluvial blocks, with open pits hardly
reaching three metres depth.

The ground is broken with excavators, loaded
into dump trucks using a backhoe excavator and hauled to the ore bin or
stockpile at the plant.

Geologists explain that the ore consists of
sands, gravels and pebbles with minor portions of boulders of conglomerates.
All material from the mining block is processed as discrete batch and thus
results can be compared with the sampling forecast for the block to check
the efficiency of the recovery process. It is estimated that an area of 66
648 hectares (ha) held under 4 special grants that belong to ZMDC. The
special grants are identified as follows:

SPECIAL GRANT NO. AREA
COVERED (ha) % OF REA

SG 4718 600 0.90

SG 4719 400 0.60

SG
4720 2100 3.15

SG 4765 63 548 95.35

TOTAL 66 648
100.00

Based on the geological exploration carried out by ZMDC, 11 889
hectares or 18% of the total concession is prospective for diamonds. The
remaining 54 759 hectares show low prospects, and further exploration is
underway in this area. The prospective concession area has been demarcated
and issued to two investors with some demarcated but not issued
yet.

SPECIAL GRANT NO. AREA COVERED (ha) STATUS

SG 4718 600
Demarcated, not issued

SG 4719 400 Demarcated, not issued

SG 4720
1 100 Issued to Mbada Diamonds

SG 4720 1 000 Issued to Canadile
Miners

SG 4765 8 789 Demarcated, not issued

TOTAL 11
889

Aside from the visit to Forbes border post, the KP Monitor's
objective was to (a) identify the total area under the control of ZMDC in
Chiadzwa, Marange, (b) subdivision of resources into manageable areas and
(c) assess mining operation at both Mbada and Canadile mining
sites.

Visit to Canadile Miners sorting site

The KP Monitor
visited the Canadile Miners sorting and valuation site in Mutare, Manicaland
province.

At the site, the delegation was received by line management and
shareholders of the company. Overall, the sorting and valuation site
appeared non compliant with the Kimberley Process minimum requirements,
largely because their security and monitoring control systems were
in-adequate, and diamond audit systems were equally not up to standard.
Understandably, the offices were only recently occupied and some if not most
of their staff had been recently employed. When the KP Monitor randomly
selected an employee, who happens to be an employee of the MMCZ, for
questioning, it became apparent that he had no idea of activities at the
sorting and valuation site, despite his role as the representative of a
state owned entity.

Findings;

(i) Canadile Miners sorting and
evaluation site does not meet a voluntary system of industry self-regulation
aimed at facilitating the full traceability of rough diamond transactions by
government authorities;

(ii) Policies, processes and procedures applied
at Canadile Miners are world class in theory and therefore need the company
to build the necessary capacity to implement them. The company also needs to
inculcate a culture of full compliance with Kimberley Process minimum
requirements;

(iii) At the sorting and valuation site there is an area
without cameras. This creates 'blind-spots' and risks breaking the chain of
warrantees. It also creates an opportunity for rough diamonds to be removed
from the security and monitoring control system. The KP Monitor believes
this compromises the audit process;

(iv) There is inadequate security
around the premises;

(v) Representatives of state security agencies on
site are not adequately trained or experienced enough to ensure that the
manner in which rough diamonds are handled is fully compliant with Kimberley
Process Certification Scheme minimum requirements;

(vi) There is no
visible paper trail to track the movement of rough diamonds from the safe to
cubicles. Management of Canadile Miners believes the current paper trail is
adequate; the KP Monitor believes the system can be improved;

(vii)
The sorting and valuation site requires a senior well trained and
experienced Diamond Auditor;

(viii) Back-up of footage from the
electronic security system is inadequate;

(ix) Roles and responsibilities
of shareholders, management and staff are blurred and confusing. The KP
Monitor was unable to identify the public office or accounting officer, even
though the Managing Director was present at the meeting;

(x) The KP
Monitor deducted, without conclusive evidence, that Canadile Miners may be
encountering financial difficulties. This conclusion, if correct,
contradicts the assertion that the company had committed US$100 million to
develop its operation in Marange.

Visit to Mbada Diamonds mining
site

The KP Monitor visited the Mbada Diamonds mining site where a
relatively new, but highly mechanised, mining operation was established. The
KP Monitor was received by the same team that met him at the sorting
facility; Dr. Mhlanga, Mr. Rhuhwaya, and Mr. Dave Kassel. The KP Monitor was
also received by representatives of government. At the mine Mbada Diamonds
demonstrated the process of the

movement of diamonds from the mine
site to screening, weighbridge, surge bins, sort boxes, all the way to the
lock boxes. The company also demonstrated health and safety procedures,
operational procedure and process flows. An elaborate security and
monitoring control system was demonstrated. All machines and equipment found
at Mbada Diamonds mine site are relatively new; this includes all mining
machinery and equipment. The KP Monitor concluded that Mbada Diamonds,
especially when compared to Canadile Miners, appears to be funded heavily by
a large and established financial institution.

Findings:

(i)
Mbada Diamonds mine is highly geared;

(ii) The company has been mining in
the Marange area since late 2009 and has, stock-piled diamonds;

(iii)
Comparing like with like, Mbada Diamonds mine is equipped on par with medium
to large mining operations in Botswana and Namibia. Management believes the
company has built a 'hands-free' mining operation;

(iv) During the visit,
security arrangements in and around the mine were elaborate and highly
visible (see section on security situation below);

(xi) Representatives of state security agencies present at
the mine are not adequately trained or experienced enough to ensure that the
manner in which rough diamonds are handled meets a voluntary system of
industry self-regulation aimed at facilitating the full traceability of
rough diamond transactions by government authorities;

(vi) The Mbada
team (shareholders and management) is intimately involved in running the
business.

Visit to Canadile Miners mine site

The KP Monitor
visited the Canadile Miners mining site where a mechanised mining operation
was established. The KP Monitor was received by management team under a tree
where he was briefed about the programme and activities of the day. Apart
from government and parastatal officials, present at the mine were directors
and management of the company. These included, Mr. Rob van der Merwe, Marco
Chioppi, Adrian Taylor, chief executive office, Z Ncube, Deputy chief
executive officer and Gwiba, office Manager. This is the same team that the
KP Monitor had met at the sorting offices.

At the mine Canadile
demonstrated the value chain and the process of the movement of diamonds
from mine site to the sorting and valuation office in Mutare. Canadile
machines and equipment at the mine site are 'work in progress. The splitting
of diamonds and non-diamonds is done in a container. Whilst the KP Monitor
was at the mine site, there was construction underway. The Canadile staff
appeared to be working hard to meet Kimberley Process Certification Scheme
minimum standards before the next visit by the KP Monitor. The Canadile
Miners management team has also undertaken to engage the services of Global
Diamond Valuators to expedite implementation of minimum requirements before
the next visit of the KP Monitors and that of Kimberley Process Review
Mission.

Findings:

(vii) Canadile Miners may be experiencing
financial challenges;

(viii) The company has been mining in the Marange
area since late 2009 and has stock-piled diamonds;

(ix) Comparing
like with like, Canadile Miners mine is currently the size of a small-scale
miner with machinery and equipment that can be moved from one site to
another without much difficulty. ;

(x) During the KP Monitor's visit
security arrangements in and around the mine were sufficient to prevent
intrusion;

(xi) The operational and geological staff demonstrated
knowledge of their mining operation;

(xii) Representatives of state
security agencies present at the mine are not adequately trained or
experienced enough to ensure that the manner in which rough diamonds are
handled meets a voluntary system of industry self-regulation aimed at
facilitating the full traceability of rough diamond transactions by
government authorities;

(xii) The Canadile miners managing director did
not demonstrate active involvement in running the business. Although he was
present, he never participated in company briefings.

Security at the
plant

MBADA

Screened concentrate weighed with truck on a weigh
bridge

Weight of concentrate from head feed is captured Weight-o-meters
used to weigh concentrate

Process at DMS double-locked by security
and mine management

Process in recovery up to vault is also double
locked

Glove boxes have cameras inside to monitor the sorting
operation

Sorting operations are hands free

Exporting boxes use
self-locking mechanism

Exporting boxes locked with two
locks

Access to all diamond areas are controlled by centralised access
control system

Exit from mining area is via an X-ray
machine

CANADILE

Count number of scoops from tipper into head
feed

Weight concentrate from surge bin recorded again Security personnel
on horses doing rounds

DMS plant is hands free

Conveyor belts
screened off with wire mesh

Recovery up to vault is double
locked

Glove boxes have cameras inside to monitor the sorting
operation

Sorting operations are hands free

Exporting boxes use
self-locking mechanism

Export boxes locked with three locks

Access
to all diamond areas controlled by centralised access control system

Exit
from mining area is via a thorough physical search

Security at the
mine

MBADA

Entrances and security exits manned 24
hours

Static security space at 100m intervals

Motorbike units
conduct rounds every hour

Dog unit right around the fence
area

Control towers Watch towers at corners of the
perimeter

CANADILE

Entrances and security exits manned 24
hours

Static security at 100m intervals

Security personnel doing
rounds on horses

Night vision cameras along the fence and mining are-
linked to central control tower

Visit to Forbes border post

En
route to Harare, the KP Monitor toured the Forbes Border Post. At the border
the delegation was able to briefly meet the head of Zimbabwe Revenue Agency
who explained that she was not authorised to speak on behalf of her
organisation.

Findings:

(i) The government of Zimbabwe has
designated Harare International Airport as the country's official point of
export for diamonds and that no border gate or other exit point was equipped
and/or authorised to facilitate the export of rough diamonds;

(ii)
Rough diamonds exported from a border gate or any other domestic airport is
deemed illegal;

(3) On the other hand, the KP Monitor was unable to
obtain regulations or legislation that supports this desired situation. It
appears that if a diamond trader met Kimberley Process minimum requirements
and obtained the Kimberley Process Certificate, he/she could apply for
permission to use a border of his/her choice.

Workshops with
Stakeholders in Harare

On 3 March 2010 the KP Monitor arranged one-hour
long workshops with individual key stakeholders at the offices of the
Ministry of Mines and Mining Development. The purpose was to outline
individual implementation plans to prepare templates. The workshop also
provided further clarification for the implementation of the Joint work
plan.

Meeting with the Reserve Bank

In a separate meeting with
officials of the Reserve Bank of Zimbabwe (Reserve Bank), two
representatives of the bank, Messrs. Manase and Chiremba explained that as
part of the court order, the Reserve Bank was requested to provide custody
for the diamonds in question during the dispute period. The bank received
all the diamonds referred to in paragraphs 3 and 4 of the High court order
in judgment no. HC 6411/07 for safekeeping pending determination of the
appeal noted against the judgment. In fulfilling this request, the Reserve
Bank established a monitoring committee comprising representatives of the
following institutions:

1. Reserve Bank of Zimbabwe

2. Minerals
and Marketing Corporation of Zimbabwe

3. Ministry of Mines and Mining
Development

4. Office of the President

5. Zimbabwe Republic
Police

6. Deputy Sheriff

7. African Consolidated Resources (legal
representative)

The Reserve Bank further appointed Mr. Jamal Joseph
Ahmed, a diamond valuator from Premier Diamonds, a company registered in
Belgium with offices in Antwerp. Premier Diamonds was assigned to confirm
the weight and value of the diamonds. members of the monitoring committee
were invited to witness the valuation and sealing of the diamonds. The
diamonds were placed in a trunk and one key was kept by the deputy sheriff
and another by African Consolidated Resources legal representatives. The
deputy sheriff also issued a receipt presented to African Consolidated
Resources. The Ministry of Mines and Mining Development has informed the KP
Monitor that its team is currently seeking legal interpretation of the court
order and the implications.

Meeting with cabinet task force on
Marange production

The KP Monitor met with the Zimbabwean cabinet task
force on Marange production. The Task Force was established by government,
to monitor developments in Marange, among other issues. The committee
comprises Honourable Mpofu, Chairman of the Committee and Minister of Mines
and Mining Development, Honourable Biti, Minister of Finance, Honourable
Ncube, Minister of Industry and Commerce, Honourable Mnangangwa, Minister of
Defence, and Honourable Mangoma, Minister of Economic Development and
Investment Promotions.

At this meeting, the KP Monitor briefed the
Task force on his activities in Zimbabwe as part of his factfinding mission.
He assured them that Zimbabwe has the capability and potential to meet
Kimberley Process minimum requirements.

Second meeting with the
Minister of Mines and Mining Development

The KP Monitor met the minister
at the end of his fact-finding mission. At this meeting, the KP Monitor
informed the Minister that his fact-finding mission was successful and that
he was able to visit every site possible and met all relevant stakeholders
in the time frame provided. The KP Monitor also informed the minister that
he would be preparing a report on his findings and that a copy would be sent
to the minister.

Media Briefing

At the end of the visit, the KP
Monitor met members of the media at the Ministry of Mines and Mining
Development. He informed the media that his mission was accomplished and
that he would be reporting to Mr. Stephane Chardon, chairman of the Working
Group on Monitoring who, in turn, would report to the chairman of the
Kimberley Process and the Minister of Mines and Mining Development,
Honourable Obert Mpofu. The KP Monitor ended his fact-finding mission and
returned to South Africa.

Agencies and companies actively involved in
mining Marange diamonds

Mining in Zimbabwe is administered and managed by
the Ministry of Mines and Mining Development. Among other issues, the
ministry is responsible for granting mining rights by issuing certificates
of registering mining claims, special grants, mining leases exclusive
prospecting orders etc. The ministry discharges some of its functions
through state owned entities such as the Zimbabwe Mining Development
Corporation (ZMDC), a company created by act of parliament.

Another
wholly-owned state entity is the Minerals Marketing Corporation of Zimbabwe
(MMCZ). Its mandate is to sell and coordinate the export of minerals, for
which it receives a commission of (0.875%). It also purchases rough diamonds
from the local market and sell them to diamond manufacturers and dealers.
MMCZ is Zimbabwe's Kimberley Process Certification Scheme exporting
authority. The MMCZ authority is required to keep diamond production
statistics and other related production and export information.

The ZMDC
is mandated to invest in the mining industry of Zimbabwe on behalf of the
state. ZMDC operates 26 separate mining companies in Zimbabwe. Some of its
operations include four special grants in the mining area of Chiadzwa, which
are held directly by ZMDC. Together, the company owns approximately 125 000
hectares of diamondiferous area.

Initially, ZMDC attempted to produce and
sell rough diamonds without partnering with commercial entities. This
attempt, which produced 1 366 872 carats over less than three years, was
later reconsidered and it was concluded that joint ventures were the
preferred way to grow its technical and financial capabilities. As at
October 2008, the company was allowed to sell rough diamonds in the open
market. An estimated 876 000 carats valued at US$8,3 million were sold to
the open market and a balance of 490 000 carats were kept in stock. Of the
US$8,3 million, US$837 000 was paid to the national fiscus.

Formation
of Joint Ventures

Following the Kimberley Process Review Mission, 2009, a
report outlining levels of non-compliance, including the security situation
around the Chiadzwa and Marange diamond fields, the Ministry of Mines and
Mining Development and ZMDC resolved to revise their mining business model.
A decision was taken to consider partnering with commercial mining
companies. According to representatives of the Zimbabwean government,
unsolicited expressions of interest from the mining fraternity were received
from various local and international operators and a file was opened for
applications.

When the government revised its business model, the
need arose to select potential partners. The simplified version of the
selection process can be summarised as follows; prospective investors were
selected by the Ministry of Mines and Mining Development, which was preceded
by establishing "a special purpose vehicle" that represented ZMDC commercial
interests. This company was later named Marange Resources Private Limited
(Marange Resources), a wholly owned subsidiary of ZMDC.

Marange
Resources although wholly owned by ZMDC is a private company registered
under Zimbabwe's Companies Act Chapter 24:03. The company was originally
registered as Block Wood Mining and later the name was changed to Marange
Resources.

In July 2009, two companies, namely Core Mining, registered in
South Africa and Grandwell Holdings, registered in Mauritius were considered
for joints ventures with Marange Resources. ZMDC would hold its interests in
the joint venture through Marange Resources. According to a report based on
ZMDC oral evidence to the parliamentary committee on mines and energy, on 8
February 2010, Core Mining Resources is a diamond mining company operating
in Kimberley, South Africa and Grandwell Holdings is a company involved in
the reclamation business with strong a financial and administrative capacity
to put in place a fully fledged mining operation.

Due diligence was
conducted on both companies and subsequently the ZMDC signed a suspensive
Memorandum of Understanding with Core Mining and Grandwell respectively. The
report states that the Memorandum of Understanding with both companies was
superseded by the shareholders agreements signed on 13 and 14 August 2009.
The joint venture for Grandwell was signed on 13 and Core Mining on 14
August 2009.

Issuing special grants

ZMDC then released special
grants named 4720 measuring 2100 hectares to Core Mining and Grandwell
Holdings. The special grants were divided in two almost equal parts. The
companies pledged US$100 million investment in the form of equipment and
machinery that would be used for building physical, processing, water, road
and security infrastructure. The agreement also undertakes to relocate
communities within and around the mining fields. An inter ministerial
committee was established to oversee the relocation programme. This
committee included the ministries of local government, public works, mines
and environment.

These joint ventures have resulted in the formation and
incorporation of two distinct companies in which ZMDC (through Marange
Resources) has 50% shares. Grandwell and Marange Resources hold their 50/50
shares in a joint venture company called Condurango, trading as Mbada
Diamonds. Condurango has entered into a management agreement with joint
venture partners, with the understanding that Condurango will be responsible
for the day-to-day running of the mining operation.

For Core Mining
Resources, a new company called Canadile Miners Private Limited was formed.
Unlike Condurango, Canadile Miners partners have agreed to jointly manage
their operations. Both joint ventures have board of directors. Condurango
has ten seats, while ZMDC is allocated five directors and Grandwell five
directors. The chairmanship of the board rotates after two years. The same
arrangement applies to Canadile Miners.

Relocation of affected
villagers

A total of 4,207 households have been identified for
resettlement to pave the way for diamond mining operations. Total costs of
resettlement have been calculated by the Ministry of Public Works and
Housing at $11,791,644 (Table 1). The investors currently have committed to
share the cost equally. New investors in the area will share the cost on
pro-rata. The government has already identified ARDA Transau farm for
resettlement of affected households. The first phase of the resettlement
exercise will see 1,800 households being moved to ARDA Transau farm where
each household will get one hectare for a homestead and half a hectare for
crop farming.

The investors have so far built two sample houses at ARDA
Transau and sunk 10 boreholes. The existing school and clinic have been
renovated. The investors will install irrigation infrastructure for the
settlers.

Small scale miners

The Ministry of Mines and Mining
Development is drafting policy and procedures on handling small scale
mining. Among other issues, the ministry is investigating the roles of each
government department and other relevant key institutions. It is also
looking at the definition of small scale miner, particularly size. To date,
no small miner has been licensed to mine. The ministry indicated that a
framework document will be completed by June 2010. However, mining
operations by small miners will begin at a much later stage.

Country
internal controls

Mining titles are issued by the Ministry of Mines and
Mining Development (MMMD) after evaluation of the application and due
diligence on the investor. The MMMD carries out periodic mine audits and
inspections. The Zimbabwe Republic Police (ZRP) Minerals Unit also monitors
the movement of diamonds from the mining stage up to the export stage. MMMD
and the Minerals Marketing Corporation of Zimbabwe (MMCZ) are responsible
for authorising exports of diamonds after satisfying themselves that the
diamonds comply with Kimberley Process Certification Scheme requirements. No
diamonds can be exported without the KP certificate.

At the port of
exit ZIMRA insists on Kimberley Process certificates being produced before
diamonds can be exported. The diamonds must be sealed and accompanied by a
commercial invoice with the seal number and number of carats being exported.
There is a statutory instrument in place which makes it mandatory for all
diamond producers to comply with minimum Kimberley Process
requirements.

Marange production and sales statistics

For the
period October 2006 to 28 February 2010, a production and sales account of
the Marange diamond field is obtainable from the activities of a number of
players as summarised in the table below.

Marange Diamond Field
Production Summary, October 2006 to 28 February
2010

Source

Product

volume

(carats) Sales volume
(carats) Stock (carats)

Marange

Resources 1,363,566.55
1,083,840.36 279,726.19

Mbada 2,005,298.44 0 2,005,298.44

Canadile
346,551.92 0 346,551.92

MMCZ mop-up 531,222.01 525,167.76
6,054.25

Police/MMMD 25,932.88 25,932.88 472.87

ACR 129,031.87 0
129,031.87

TOTAL 4,401,603.67 1,634,941.00
2,767,135.54

Source:MMMD (2010)

Marange Resources annual
production volume, 2007 - 2009

Production Period Diamond recovery
(carats)

2007 494,181.95

2008 460,017.20

2009
409,367.40

Total Production 1,363,566.55

Source: MMMD
(2010)

Marange Resources Sales Summary, 2008 -2010

Sales
Carats

Tender 1 01-Oct-08 101,550.00

Tender 2 01-Mar-09
87,307.09

3,706.63

328,305.01

Tender 3 16-Jun-09
64,305.44

2,445.32

104,260.86

2,005.31

61,028.61

Tender
4 20-Aug-09 17,930.11

30,263.06

73,221.52

Tender 5
27-Jan-10
2,753.73

3,678.18

10,387.95

17,445.83

81,056.81

63,297.66

28,891.24

Total
sales 1,083,840.36

Closing stock at 28

February 2010
279,726.19

Source: (2010)

Marange Resources only started sales in
October 2008. The slow issuance of CD1 (currency declaration) forms by the
Reserve Bank of Zimbabwe slowed the export process causing the accumulation
of product/stock pile. A paper trail is available for all transactions
entered by Marange Resources. The Ministry of Mines and Mining Development,
through the comptroller and auditor general is engaging a forensic auditor
to reconcile production and sales figures for Marange diamonds as stipulated
in the Joint work plan, Strategic Issue 8. The exercise will include
reconciliation of all diamonds bought by MMCZ and those from police
seizures.

National Production Statistics,
2009

Marange

Resources Mbada Canadile Murrow River Ranch
TOTAL

409,367.40 302,115.08 57,537.00 121,863.19 72,617.23
963,499.90

In 2009, Mbada and Canadile only started production in
December 2009.

Cooperation and Transparency

In 2009, cabinet set
up an inter ministerial task force to oversee Kimberley Process compliance
issues on Marange diamonds, to include investment in the Marange diamond
field and relocation of affected households. The three political parties to
the Global Political Agreement (GPA) are represented in the
inter-ministerial task force whose members include:

In addition, there is the parliamentary
portfolio committee on mines and energy which monitors compliance with best
practices. It also monitors the implementation of relevant legislation and
corporate governance by all players in the diamond industry. A steering
committee chaired by the Ministry of Mines and Mining Development, monitors
implementation of the Joint work plan agreed to with the Kimberley Process
Certification Scheme. Other members of the committee include MMCZ, ZMDC,
ZIMRA and ZRP - Minerals Unit. There is also a committee on border control
made up of the ZRP - Border Control and Minerals Unit, ZIMRA and immigration
officials who work with their counterparts in Mozambique.

A
provincial committee chaired by the Ministry of Local Government has been
set up to deal with the relocation process for affected
households.

The Committee is made up of officials from:

· Ministry
of Local Government

· Ministry of Lands

· Ministry of Public
Construction

· Department of Irrigation

· Department of Physical
Planning

· District Development Fund

· Environmental Management
Agency

· Mutare Rural District Council

· Ministry of
Agriculture

· Ministry of Mines and Mining Development

· Zimbabwe
Mining Development Corporation

The committee reports to the provincial
governor for Manicaland.

Security situation in
Marange

Demilitarisation of Marange diamond field appears to be ongoing,
in accordance with the Kimberley Process Administrative Decision and Joint
work plan. As resource areas are demarcated and allocated to joint venture
companies, investors take full responsibility of their areas and are
compelled to secure their areas and operate on hands free auditable systems.
The KP Monitor was informed that there is now complete demilitarisation of
areas under Mbada and Canadile's operations. Both Mbada and Canadile have
secured their areas of operation through physical security barriers (fences
etc) and electronic means.

Industry voluntary
self-regulation

The global diamond industry has undertaken to implement a
voluntary system of self-regulation by ensuring an effective internal
control system of diamonds based on the international certification scheme
for rough diamonds. This system includes a chain of warrantees underpinned
through verification by independent auditors of individual companies and
supported by penalties set by industry, which helps facilitate the full
traceability of rough diamond transactions by government authorities. The KP
Monitor attempted to establish levels of compliance by mining companies at
Marange diamonds fields. The results were as follows:

Security
situation at Sorting and Valuation facilities

MBADA CANADILE

·
Screened concentrate weighed with truck on a weigh bridge

· Count number
of scoops from the tipper into head feed

· Weight of concentrate from
head feed is captured

· Weight-o-meters used to weigh
concentrate

· Weight concentrate from surge bin recorded again

·
Security personnel on horses doing rounds

· Process at DMS double-locked
by security and mine management

· DMS plant is hand free

· Process
in recovery up to vault is also double locked

· Conveyor belts screened
off with wire mesh

· Recovery up to vault is double locked

· Glove
boxes have cameras inside to monitor the sorting operation

· Glove boxes
have cameras inside to monitor the sorting operation

· Sorting operations
are hands free

· Sorting operations are hands free

· Exporting
boxes use self-locking mechanism

· Exporting boxes use self-locking
mechanism

· Export boxes secured with 3 locks

· Exporting boxes
are secured with 2 locks

· Access to all diamond areas controlled by
centralised access control system

· Access to all diamond areas
controlled by centralised access control system

· Night-vision cameras along fence and
mining area- linked to central control tower

Landing air strip and
security control tower

The KP Monitor visited the well-publicised air
strip that is being built in the area. The mine management team informed the
KP Monitor that the airstrip will be used to transport rough diamonds from
the mine to the sorting and valuation facility in Harare. The KP Monitor was
also taken to the security control tower. The tower is being built on the
highest point in the Marange area.

Matter between Ministry of Mines
and Mining Development and African Consolidated Resources

The KP
Monitor was informed by the Ministry of Mines and Mining Development that
African Consolidated Resources Plc, a public company listed on the London
Stock Exchange, has over the past several years, declared a dispute on
mining claims in the Marange diamond fields with the ministry and its
associated institutions. The dispute between the parties culminated into a
High Court ruling in September 2009 with a court order stating the following
(as paraphrased):

· The African Consolidated Resources claims issued
to Dashaloo Investments, Possession Investments, Heavy Staff Investments and
Olebile Investments, which are within the area previously covered by
Exclusive Prospecting order 1523 held by Kimberlit Searches are valid and
have remained valid since the date they were originally pegged, and the
right granted to a company that is associated with African Consolidated
Resources, shall not apply in respect of the African Consolidated Resources
claims as indicated on Annexure 'B' (of the application). In that regard it
is hereby ordered that Zimbabwe Mining Development Corporation cease its
prospecting and diamond mining activities in the said area.

· The
Court Order further instructs that 129 400 carats of diamonds seized from
African Consolidated Resources offices in Harare January 2007 be returned to
African Consolidated Resources, and the Police be directed to cease
interfering with the African Consolidated Resources prospecting and mining
activities. And that the Ministry of Mines and Mining Development and/or its
associate institutions pay African Consolidated Resources lost on a legal
practitioner and client scale, the one paying the other to be
absolved.

The Ministry of Mines and Mining Development advised that
this matter is sub judice and therefore cannot be discussed in detail until
a legal opinion is obtained from its advisors.

The matter between the
ministry of Mines and Mining Development and African Consolidated Resources
is of serious concern. Indications are that the African Consolidates
Resources may file an urgent application to stop shipment of rough diamonds
that were mined from Marange diamond fields. This action may require
Kimberley Process participants and observers to apply their minds on the
matter.

The KP Monitor is of the opinion that the Kimberley Process is
mandated by its participants and observers to ensure that Zimbabwe complies
fully with minimum requirements of the Kimberley Process Certification
Scheme. And that the matter between the ministry of Mines and Mining
Development and African Consolidated Resources is a subject of Zimbabwe's
national laws and court decisions. An attempt to handle the matter outside
the courts could easily draw Kimberley Process participants and observers
into a political and diplomatic disagreement.

The KP Monitor
recommends that Kimberley Process should focus on the implementation of the
joint work plan, as envisaged, to ensure that Zimbabwe is in full compliance
with Kimberley Process minimum requirements. In the event of an urgent
application by African Consolidated Resources, Kimberley Process actions
should be guided by a court decision on the matter.

The Way
Forward

The following challenges and recommendations are not listed in
any particular order, but focus on issues that may have a negative impact on
the implementation of the joint work plan, directly or indirectly. In
listing these challenges and recommendations, an attempt is made to list
only those that address issues covered in the joint work plan, and relevant
to Kimberley Process minimum requirements.

Challenges
Recommendations

· Government agencies have recently deployed civil
servants to monitor and report on the diamond production exports and
imports, however, most of these individuals are not adequately trained or
inducted into this new responsibility

· Ongoing onsite training and
coaching be provided to civil servants. Among other issues, the focus should
be on system leakage and audit processes and procedures. Others may be
trained as diamond sorters and valuators.

· Too many government agencies
are involved in monitoring and handling rough diamonds. This poses the
danger of diamonds being swapped or stolen in the process.

· Only the
MMCZ, ZIMRA and ZRP should handle rough diamonds. Even with these three
agencies, movement of rough diamonds should be subjected to a monitoring and
security mechanism that can detect the loss or of diamonds.

· ZMDC has
issued some special grants and is issuing more such grants.

· ZMDC should
accelerate the process of issuing special grants in the Chiadzwa area since
illegal miners may seek to occupy unfenced areas.

· ZRP is permitted by
legislation to hold confiscated rough diamonds as exhibit. The legislation
allows ZRP to transport rough diamonds to court as required.

·
Legislation be amended to reduce the risk of diamond swap or loss. In the
event that legislation need not be amended, government may consider the
safe-keeping of rough diamonds at MMCZ (on confiscation and during court
proceedings) and only release them when necessary.

· Zimbabwe Reserve
Bank currently holds rough diamonds for safekeeping pending the court order
and Appeal of the court order by the government of Zimbabwe.

· Mbada Diamonds and Canadile need to increase the chances
of providing accurate rough diamond statistics from production to sorting
and valuation.

· These companies be encouraged to install Torex and
counting machines at the mines.

· Mbada Diamonds and Canadile Miners
do not have adequate diamond audit systems.

· These companies need to
employ, a full time qualified diamond audit to increase their chances of
complying fully with industry self-regulating mechanism as agreed by the
global diamond industry and Kimberley Process participants.

· Mbada
Diamonds and Canadile Miners have not been able to demonstrate that their
sorting and valuation centres have no blind-spots.

· These companies need
to put cameras all around their sorting and valuation facilities.

· Both companies are
requested to submit insurance report from a current insurer of the sorting
and valuation facility stating that the facilities are fully insured at a
value equivalent to the value of its production

· Mbada Diamonds and
Canadile Miners claim their electronic surveillance systems are fully
fraud-proof and they guarantee an off-site back-up.

· Both companies are
requested to submit an assurance letter certifying that the electronic
security system installed at their sorting and valuation facilities cover
all areas in the facilities and that on request from the Kimberley Process,
they can provide footage of at least three years of coverage, assuming that
their operations continue for such a period.

Other Challenges and
Recommendations

In addition, the following additional related challenges
and recommendations should be taken into consideration.

Challenges
Recommendations

· Marange diamonds field is a resource-rich region on the
one hand but a politically and economically charged piece of land on the
other. The political and economic leadership in and outside government faces
the challenge of ensuring that revenue generated from the sale of rough
diamonds is used to reconstruct and develop the economy. The challenge is
for all parties

involved to communicate clearly the strategic
direction the country would like to take in exploiting diamond resources in
the interest of all people of Zimbabwe.

The KP Monitor recommends
that the Cabinet Task Force on Marange production must lead an economic
strategy aimed at developing and growing the diamond mining industry in
Zimbabwe to create a significant source of revenue for the state. The
strategy will have to be communicated clearly at all levels of government
and industry to solicit the buy in of all key players in the
industry.

The communication of clear messages to communities and
other relevant stakeholders in and around Marange needs to be led by the
Cabinet Task Force and/or its representative bodies.

· Communities in
Chiadzwa, Marange are not connected to the mining activities in the area.
They have seen a fence being erected around the diamond fields, an air strip
being constructed, and trucks and bulldozers working. And they have been
informed that they will be relocated. The national, provincial and local
government representatives and their implementing authorities need to
develop an inclusive and well-coordinated relocation strategy aimed at
building consensus on the way in which relocation should be
implemented.

Such relocation of the community may require a well thought
out and well orchestrated plan with involves the participation of all
stakeholders, particularly the local communities and their representatives.
It might also help to remember that the decision to relocate was taken at
the height of the diamond rush and that the circumstances have since changed
following the end of diamond rush.

A national and regional
communication strategy and plan is required to educate and inform the
community and all relevant stakeholders on the rationale, goals and
objectives of the relocation.

There must be room for new ideas on the
nature of the relocation since this decision was taken during or around the
diamond rush period. New ideas may include; classification of communities
that need to be relocated and categories of communities such as (a) those
members of the community who would like to secure jobs at the mine (b) those
who may want to be paid cash and start a new life elsewhere; and (c) those
who are ready to relocate to a designated area.

· The government and
its associate institutions face a financial crisis, as a result certain
fundamentals are not in place to develop and grow diamond production in
Marange. It might be relevant to consider development institutions in Africa
and the world at large that are mandated to provide developmental assistance
of all types.

The government needs to appoint a team that will research
development institutions such as the African Development Bank, Development
Bank of Southern Africa, Industrial Development Corporation and the European
Community, etc. This takes into account that there are sanctions imposed on
government and government officials.

· The selection of joint venture
partners to invest and mine diamonds in the Marange diamond fields has
received much criticism from several quarters. Numerous documents suggest
prospective investors normally apply for grants and these applications
accumulate over time. At a later stage relevant government institutions
process these applications and select some.

The Ministry of Mines and
Mining Development may want to consider a more transparent, credible and
predictable system that will enable the ministry to select applicants for
consideration. Such a system will ensure credibility and accountability in a
more transparent and predictable manner.

· The certification and shipment
of Zimbabwe's rough diamonds is certainly going to create a revenue base for
the government. The communities where diamonds are mined are most likely to
expect return on the diamond resources.

The Ministry of Mines and
Mining Development may want to consider releasing statistics on the
royalties and company taxes paid to government as well as dividends declared
by the MMCZ annually to demonstrate how the diamond industry is contributing
to the national fiscus. The ministry may also want to demonstrate how mining
in the area is contributing to the development of infrastructure, job
creation, wealth, health and educational development.

· The development
of small scale mining is a daunting task for government due to its
complexity and magnitude. The programme that the Ministry of Mines and
Mining Development and other stakeholders have embarked on is
commendable.

The ministry of Mines and Mining Development may want to
conduct a benchmark study on small-scale mining in countries that have
similar economic and mining circumstances. These include Ghana, Sierra Leon
and Angola.

· The implementation of the joint work plan Government needs
to expedite the process of requires technical and financial support from
participants. Apparently, that the government has written letters to
countries such as South Africa to solicit technical support engaging these
countries to support speedy implementation of the joint work plan. South
Africa and European Community may be ready to assist government with
immediate effect. The government should direct specific requests for
assistance to those countries that have offered technical assistance, in
order to ensure that areas of greatest need are addressed as a matter of
priority.

· Experience has shown that illicit trade in Zimbabwe is most
likely to spill over to its neighbouring countries. There is need for
regional cooperation as recommended by the Working Group on Monitoring and
as foreseen in the joint work plan. Such co-operation may include internal
monitoring controls, security, technology, and coaching and or training. The
DRC as the Vice Chair of the Kimberley Process may wish to consider
championing efforts to promote strengthened regional co-operation, in
consultation with the government of Zimbabwe, in order to ensure that such
regional co-operation is designed to address specific challenges being faced
by Zimbabwe in meeting the minimum requirements of the Kimberley Process
Certification Scheme.

Support for the KP Monitor

· Following
the fact-finding-mission, the KP Monitor was able to establish the magnitude
of the tasks ahead and has concluded that to fulfill his mandate in a
professional and diligent manner he needs secretarial and technical
expertise. It would be unrealistic to expect him to fulfill this task
without secretarial and technical support.

Recommendations on the
Secretarial and Technical support

· The secretarial support that is
required includes the facilitation of constant communication with all key
stakeholders; planning and coordination of KP Monitor visits to Zimbabwe;
compilation of supporting documentation in preparation for writing periodic
reports; monitoring media coverage of the Marange diamond fields and general
administration of the activities of the KP Monitor. The envisaged
secretarial support will ensure that the collection and, verification of
data, as well as certification of information provided by the Zimbabwean
government and industry is accurate. It will also ensure that periodic
reports written by the KP Monitor are prepared professionally. Additional
information may reach the KP Monitor through sources such as KP
Participants, Observers and the Zimbabwean government.

· The
following recommendations are made to expedite the task of the KP Monitor.
The individuals who are recommended are highly competent and are known
professionally to the KP Monitor and with whom the KP Monitor feels
comfortable working. The fact that they are based in the region helps to
keep costs down and makes the co-ordination of regular visits to Zimbabwe by
the KP Monitor easy to co-ordinate, especially in the area of technical
support on site in Marange.

Secretarial

· The KP Monitor
recommends Ms. Thuli Magubane, an experienced and professional project
coordinator, be engaged to provide the envisaged. For the past seven years,
she has served the corporate world as an administrator and coordinator. Her
strengths are in establishing programme management offices (PMOs) designed
to administer and coordinate large projects. She has implemented PMOs in the
financial and property industries in South Africa. Thuli has attended
various training courses in programme management office, project management
methodologies and project coordination. For more information, please consult
the resume, which accompanies this report.

Technical

· The KP
Monitor recommends Ms. Jennifer Posthumus, an experienced diamond expert, be
engaged to provide the envisaged. With over 20 years of experience in the
diamond industry, Jennifer has sorted and valued large quantities of rough
diamonds into various assortments for optimum yield. In the past six years,
she acquired experience in negotiations with buyers and sellers in the open
market. Jennifer attended various training programmes in South Africa,
Antwerp, London and Israel. She has worked for the De Beers, group of
Companies, including Diamdel, South Africa. Currently, she works for Degas'
Love a rough diamond trading company. Her professional integrity and ethical
standards are beyond reproach. For more information, please consult the
resume which accompanies this report.

Next visit to Zimbabwe

· The
KP Monitor is available to visit Zimbabwe from 6 -8 April 2010, subject to
confirmation with chair of the working group on monitoring and the
government of Zimbabwe. The purpose of the visit is to conduct a thorough
examination of individual shipments from any producing area in Marange and
their chain of custody to confirm whether rough diamonds selected for
shipment were produced and prepared in accordance with Kimberley Process
Certification Scheme minimum requirements.

· If compliant, the KP Monitor
is required to confirm the certification on the relevant Kimberley Process
Certificate with his signature and stamp, and will digitally photograph the
certificate and shipment. If not compliant, the KP Monitor will provide to
the Ministry of Mines and Mining Development of Zimbabwe written indications
as to the reasons, including any possible means of remediation. During this
period, the shipment will be held until remedial action is completed, after
which the KP Monitor will reexamine the export and, if fully compliant,
certify it and sign the certificate, as provided in the joint work
plan.

· The KP Monitor would like to be accompanied by a diamond expert
and a project coordinator when he visits
Zimbabwe.

Conclusion

· The Kimberley Process Certification Scheme
remains the only international system that has successfully responded to
conflict resource issues worldwide. The scheme has successfully and
drastically reduced resource issues on the continent and has contributed to
the political and economic stability of fragile states such as Zimbabwe. The
scheme is known for imposing extensive requirements on its members to enable
them to certify shipments of rough diamonds as 'conflict free' and prevent
conflict diamonds from entering the legitimate global trade.

· Under
the terms of Kimberley Process Certification Scheme, participating states
must meet minimum requirements and must put in place national legislation
and institutions; export, import and internal controls; and also commit to
transparency and exchange of statistical data. Participants can only legally
trade with other participants who have also met minimum requirements of the
scheme, and international shipments of rough diamonds must be accompanied by
a Kimberley Process Certificate guaranteeing they are conflict
free.

· The implementation of the joint work plan is critical for meeting
these minimum requirements. - ZimOnline

Malema
and TerreBlanche flip side of same coin

THE slaying of
Eugene TerreBlanche is a call to arms, but precisely not the call to arms
that either he or his mirror image, Julius Malema, would ever issue. His
death is a call to arms for the rest of us, the people who are not seduced
by their darkest suspicions, the people who still believe in a future that
will be not defined first and foremost by race, the people who feel
themselves to be the minority but who are actually the majority.

It's a
typical South African irony that TerreBlanche, the quintessential Boer,
should be killed at the precise time when Malema is trying to whip up Zanu
(PF)-style hatred about people he describes as "Boers" - in Zimbabwe.
Malema's endorsement of the "Ayesab' Amagwala" song will strike
TerreBlanche's benighted supporters not as a historical artefact but as an
explicit endorsement of farm killings. It's not, of course. It's just the
normal, usual, run-of-the-mill Malema politics at its most typical -
pressing into a grey zone with all the delicacy of an elephant intent on
gaining notoriety.

The deeper irony is that TerreBlanche and Malema are
flip sides of the same coin: their techniques, their style, their general
ham- fistedness, their faux-populism, their carefully constructed
"outrageousness", their bizarre media appeal, all come from the same
political copybook.

The difference is that TerreBlanche's bubble had long
ago been pricked, and Malema's appears to be inflating at extraordinary
speed, with the bewildered and stunned assistance of the African National
Congress's (ANC's) chronic do-nothing culture.

There was a time when
TerreBlanche was as feared at Malema is today. He was recognised as
"extreme", yet he was also given credence as a tip of the iceberg - a symbol
of what Afrikaners would be if they gave in to their
fears.

TerreBlanche always styled himself as a "boer", a farmer, but
I once visited a real farmer whose farm in the Ventersdorp area neighboured
that of TerreBlanche. He told me TerreBlanche was a terrible farmer, and
that he generally farmed nothing.

He also noted with a grin that
TerreBlanche did not even study agriculture. "Hy was a drama student," he
revealed.

Far from representing Afrikaners, TerreBlanche was in fact the
opposite of the "nation" he sought to represent; flamboyant, immodest,
arrogant, and generally a klutz - all terrible sins among ever-capable,
ever-modest, ever-resilient, God-fearing farmers. He even struggled to ride
a horse.

It's interesting to recall how TerreBlanche collapsed under the
weight of his own falsities. Perhaps this is Malema's ultimate fate.
TerreBlanche was caught having an affair with an attractive, blonde
journalist, Jani Allan. Within his own movement, the affair was a terrible
betrayal; he was married, she was English. So he denied the affair, despite
Allan's gushing admission in her Sunday Times column that, "Right now I've
got to remind myself to breathe ... I'm impaled on the blue flames of his
blowtorch eyes."

His denial rebounded on him, and TerreBlanche's
extremism came to be recognised for what it was, a giant paper tiger.
TerreBlanche was peddling hatred, and ordinary people may be intrigued, they
may attend his meetings. The weak-minded might even be inspired. But it
takes special circumstances for hatred to work as political
ideology.

One of the things we may have to get used to over the next week
or so is the repeated use of that old Marx quote, "history repeats itself
first as tragedy and then as farce". The problem is that although Terre-
Blanche's death is a personal tragedy, it is not a political tragedy. It's
symbolic not of an attack on farmers, it's an attack on the vulnerable and
the isolated everywhere.

Neither is Malema's repetition of the
TerreBlanche methodology a farce. It's dangerous because the ANC is so
scared of itself that it cannot represent ordinary South Africans who now
generally joke about their racial differences. Racial problems and
inequalities exist, but race hatred is an indulgence of the extremes that
belongs to TerreBlanche's generation. He would do his country its greatest
service if he took it with him to his grave.

The “Agreed
Package” announced by
President Zuma on 18th March is still shrouded in secrecy, raising the question
- did President Zuma really forge an acceptable agreement or is he playing for
time until after the FIFA World cup? On 26th March President Mugabe told the
ZANU-PF Central Committee there had been no agreement on the Gono, Tomana and
Bennett issues, or on sharing of provincial governorships, and also said “there
cannot be any further concessions from us unless the illegal sanctions are
gone”.

Negotiators report
ready: The party teams
resumed negotiations on 25th March and presented a “verbal report” on 31st March
to the South African facilitation team. The written report was finished on 2nd
April and is being reviewed by the three party principals. The facilitation
team are returning to Harare to discuss it and have said they will insist on
broad agreement. It has already missed the 31st March deadline and this will
further delay the comprehensive report which President Zuma is to give to the
SADC Organ. The negotiators have remained tight-lipped about what they have
achieved, but Minister Chinamasa has said that the report will list both points
of agreement and of disagreements – so it is reasonably clear that points of
disagreement remain. Sources report that unspecified electoral reforms have
been agreed but that the Gono, Tomana, Bennett and provincial governors issues
have not been resolved.

Prime Minister wants
SADC to break deadlock: In a statement on
31st March Prime Minister Morgan Tsvangirai praised President Zuma’s “dedication
to breaking the impasse” but also said: “after the most recent
round of negotiations it appears that the issues that have stalled progress for
more than a year are still being used to avoid creating the open, free and
prosperous society that our people demand and deserve. If this situation
continues, I will ask President Zuma to call upon SADC to break the deadlock
once and for all.” [Electronic version of PM’s full
statement available on request.]

Indigenisation
Regulations

No
amendments to the regulations have been gazetted, so the 15th April target date
for submission by businesses of completed form IDG01, showing current extent of
indigenisation and, if appropriate, indigenisation plans, remains
unchanged.
The Minister of Indigenisation and Economic Empowerment announced that changes,
if any, would come only after indigenisation plans submitted by businesses under
the regulations had been considered by sectoral inter-ministerial committees and
the committees had reported on appropriate changes.

The
Regulations are being Examined by the Parliamentary Legal
Committee
[PLC] which has asked the Speaker for extra time within which to consider the
constitutionality and validity of the regulations. If the PLC reports that
provisions in the regulations are inconsistent with the Constitution and if the
PLC report is endorsed by the Senate, the offending provisions will have to be
repealed by the President unless the House of Assembly resolves they should
stand [Constitution, Schedule 4 paragraph 8]. If the PLC reports that
the regulations are consistent with the Constitution, but are ultra vires.
i.e. beyond the powers conferred on the Minister by the Indigenisation and
Economic Empowerment Act, or are otherwise legally unsatisfactory, it will be up
to the Minister to decide whether to do something about it – if he does nothing
an adverse report would strengthen the case for affected businesses to challenge
the regulations in court. [Veritas
Bill Watch commentary on the indigenisation regulations available on request;
also available – Zimbabwe Lawyers for Human Rights submission to the PLC and the
Portfolio Committee.]

No
Parliamentary Committee Meetings This Week

No
Thematic or Portfolio Committee meetings have been scheduled for the week after
the Easter break. Most committees have wound up pending business ahead of the
anticipated April commencement of the constitution outreach programme, which
will involve nearly all Parliamentarians.

The
State v Roy Bennett: Judgment Postponed to 10th May!

Justice
Bhunu was to have given his decision on the defence application for Mr Bennett’s
discharge on Wednesday 31st March. But the judge said his judgment was not
ready and postponed the case to 10th May, after the court vacation. Mr Bennett
has now also been summoned to answer charges of contravening the Grain Marketing
Act in 2001 – but this appears to be a police initiative not sanctioned by the
Attorney-General’s Office, which is to review the docket.

Farmers
Latest Efforts to Have SADC Tribunal Rulings Enforced

A
group of dispossessed commercial farmers have applied to the SADC Tribunal for
[1] a declaration that Zimbabwe continues to be in contempt of the Tribunal’s
earlier orders in the land cases and [2] for an order directing the SADC Summit
to take action on Zimbabwe’s failure to uphold the Tribunal’s orders. [Under
the SADC Treaty the Tribunal cannot enforce its orders against a member State;
that is a matter for the SADC Summit.] The Tribunal made a finding of
contempt against Zimbabwe in July 2008 and referred the finding to the SADC
Summit “for appropriate action”, but the Summit has not yet acted.

Chiadzwa

Parliamentarians
refused access: the Portfolio
Committee for Mines and Energy, under the chairmanship of Hon Chindori-Chininga
of ZANU-PF, arranged to visit Chiadzwa last week andtravelled to Mutare for the purpose, armed with
clearance from the Ministers of Home Affairs. But the committee was prevented
from carrying out its intended
inspection of operations, apparently because the Minister of Mines would not
grant authorisation for the visit.

In the Parliamentary
Portfolio Committee: Following the in
camera appearance of the Permanent Secretary and Minister before the
Parliamentary Portfolio Committee on Mines and Energy the previous week,
representatives of the Mbada and Canadile companies appeared before an open
meeting of the Committee on 23rd March. [After initial resistance the
Permanent Secretary, the Minister and the company directors eventually
recognised the Committee’s right to insist on their presence under the
Privileges, Immunities and Powers of Parliament Act.]

The Kimberley Process
Monitor for Zimbabwe, Mr
Abbey Chikane, has compiled a report on his fact-finding visit to the country in
early March. One of his observations on the operations at Chiadzwa is:
“Too many government
agencies are involved in monitoring and handling rough diamonds. This poses the
danger of diamonds being swapped or stolen in the process.”[Full report available on request.]

Urban
Councils to get Special Interest Councillors

Statutory
Instrument
79/2010[Electronic
version available on request.] was
gazetted on 2nd April and specifies the numbers of non-voting special interest
councillors to be appointed to each of the country’s urban councils by the
Minister of Local Government, Rural and Urban Development in terms of section 4A
of the Urban Councils Act. [Section 4A was added to the Act when it was
amended in January 2008 as part of the package of reforms agreed by the three
political parties ahead of the 2008 harmonised elections.]

Under
section 4A each urban council consists of:

·one
elected councillor for each ward of the council area, and

·a
number of appointed councillors “representing special interests” fixed by
Minister for the particular council by statutory instrument, the number fixed
not to exceed one quarter of the number of elected councillors.

In
statutory instrument 79/2010 the Minister has fixed the maximum possible number
of special interest councillors for every urban council, e.g., in Harare, which
has 46 elected councillors, there are to be 11 appointed; in Bulawayo, which has
29 elected councillors there are to be 7 appointed.

Note:
Special interest appointed councillors have been a feature of rural district
councils for some years. The Minister’s appointment of councillors to rural
district councils has been criticised as not truly representing special
interests, the complaint being that he has simply appointed former ZANU-PF
councillors to councils now dominated by MDC-T. The Minister has claimed his
appointees have local government experience that new MDC councillors do not
have. There are no criteria controlling the Minister’s use of the power to
appoint special interest councillors. They hold office “at the pleasure of
the Minister” [which means they can be removed by the Minister at any time
without any reason given, making it likely that they will follow his
instructions]. They do not have a vote at council meetings but otherwise are
entitled to participate in the business of the council and to receive the same
benefits as elected councillors, e.g., allowances.]

Public
Finance Management Act
(11/2009), gazetted and into force 2nd April. [Passed by Parliament 17th
December 2009] This Act repeals the State Loans and Guarantees Act and the
Audit and Exchequer Act, but loans and guarantees previously contracted are not
affected and all existing statutory instruments under those Acts continue in
force.

Audit
Office Act
(12/2009), gazetted 2nd April 2010, but not yet in force[Passed by
Parliament 17th December 2009.] This Act will come into force on a date to
be fixed by the President by statutory instrument.

Reserve
Bank of Zimbabwe Amendment Act
(1/2010), gazetted and into force 31st March 2010. [Passed by Parliament 9th
March 2010.] [Electronic
version available on request.]

All Acts
of 2009 have now been gazetted.

Bill in
House of Assembly:
Public Order and Security Amendment Bill. [Private Members Bill in second
reading stage]

Statutory
Instruments: SI
79/2010 provides for Ministerial appointees on all urban councils [see note
on Urban Councils get Special Interest Councillors above]. SI 80/2010
provides for customs duty rebates on engine spares, motor vehicles and
components for the National Railways.

Veritas makes every
effort to ensure reliable information, but cannot take legal responsibility for
information supplied